Page last updated at 12:57 GMT, Tuesday, 19 January 2010

Flyglobespan ticket firm in administration

Globespan aircraft
FlyGlobespan collapsed in December last year

E-Clear, the company responsible for online ticket sales at the failed airline Flyglobespan, has been placed into administration.

A High Court judge granted the administration order following a request from PricewaterhouseCoopers (PWC) - FlyGlobespan's administrators.

PWC has accused E-Clear of withholding £35m from the airline before its collapse in December last year.

The administrators said it was now clear the funds were "no longer there".

The funds being disputed consist of payments made by customers for flights, which PWC claims were not passed on to Globespan - FlyGlobespan's parent company, which was based in Edinburgh.

PWC said it had no explanation for why the money had been held back and E-Clear had not told it how much money existed.

A request to put the contested funds into a joint account had also been refused, it said.

Following the decision to place E-Clear into administration, Bruce Cartwright, administrator at PWC, said that the company would be working to recover as much money as possible for Globespan's creditors.

"Those who bought services on credit card or visa debit, that have not been supplied, will continue to be protected by consumer card legislation and should contact their credit card issuer," he added.

Thousands of passengers were stranded abroad and 550 staff made redundant when the FlyGlobespan collapsed in December 2009.

A Scottish Government spokesman said: "This is a deeply worrying situation and we will continue to press the UK Government to investigate fully the circumstances behind the collapse of Globespan".



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SEE ALSO
FlyGlobespan cash recovery move
04 Jan 10 |  Scotland
Credit firm denies airline claims
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Flyglobespan passengers stranded abroad
17 Dec 09 |  Scotland
550 jobs lost at failed airline
18 Dec 09 |  Scotland
Airline's collapse strands 4,500
17 Dec 09 |  Scotland
Scotland's biggest airline goes bust
16 Dec 09 |  Europe

RELATED INTERNET LINKS
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FROM OTHER NEWS SITES
Computing.co.uk Globespan collapse triggers E-Clear administration - 3 hrs ago
The Scotsman Scottish Business Briefing - Wednesday 20 January, 2010 - 4 hrs ago
Times Online Credit card company blamed for failure of Globespan collapses with 100m debts - 8 hrs ago
The Independent SFO to look into missing millions at E-Clear - 12 hrs ago
Guardian.co.uk E-Clear, credit card processor involved in the Globespan collapse, put into administration - 16 hrs ago



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